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Tech Rebound Pushes Stocks Higher for a Fourth Day: Markets Wrap

(Bloomberg) -- Gains in the information technology and health care sectors helped to propel U.S. stocks higher for a fourth day. Turkey’s lira jumped after a rate hike, and the dollar fell after data showed a gauge of underlying U.S. inflation unexpectedly cooled in August.

Equities pulled back earlier from the day’s highs after President Donald Trump tweeted that U.S. isn’t under pressure to reach a trade agreement with China. While speculation on trade continues to dictate investor sentiment, the consumer price data and the resumption of the rally in tech kept shares afloat. The MSCI Asia Pacific Index climbed for the first time in 11 sessions, with equities rallying in Shanghai and Hong Kong.

“The big thing about tech today is it feels like a relief rally,” said Chris Zaccarelli, chief investment officer at Independence Advisor Alliance in Charlotte, North Carolina. “There was extreme pessimism in terms of what was happening with tariffs potentially being put in place this week.”

The pound rose after the Bank of England kept rates steady as expected, and strengthened more as the greenback slipped. The euro also climbed, after the ECB’s predicted hold and as President Mario Draghi expressed confidence on wage growth and the outlook for inflation. Turkey’s lira surged after the larger-than-expected move by the Turkish central bank.

In the end, markets appear to be giving a cautious welcome to the earlier news that the U.S. and Chinese governments are working out the details for a new round of trade talks, just days after Trump threatened to slap tariff hikes on nearly all goods from China. Emerging-market assets -- among the hardest hit by the protectionist spat -- rallied.

Elsewhere, crude oil pared two days of gains made on the outlook for tighter supply. The potential impact on commodities from Hurricane Florence faded with lower wind speeds.